Mexican court issues $2.7 billion ruling against Yahoo

Yahoo Inc. is facing $2.7 billion in damages after a Mexican civil court ruled that it breached contract on a yellow pages listing service.

According to a statement Yahoo released on Friday, the plaintiffs Worldwide Directories S.A. de C.V. and Ideas Interactivas S.A. de C.V. “alleged claims of breach of contract, breach of promise, and lost profits arising from contracts related to a yellow pages listings service."

Yahoo plans to appeal, and says it believes the plaintiffs’ claims have no merit.

Analyst Brian Wieser told Bloomberg that $2.7 billion is probably more than Mexico’s entire Internet advertising industry has made so far, and that the ruling was unlikely to stand.